Intel axes fitness trackers and health wearables team: report

PanARMENIAN.Net - Intel has axed the division that worked on health wearables, including fitness trackers, according to a person familiar with the matter, CNBC reports.

The company has been slowly de-emphasizing its own line of wearables for the past several years, and has not mentioned wearables on its earnings calls since 2014.

In November, TechCrunch reported that the company was planning to take a step back from the business after its acquisition of the Basis fitness watch didn't pan out as expected. Intel denied at the time that it was stepping back.

But a source told CNBC that the chip maker in fact let go about 80 percent of the Basis group in November. Many of the people were given the opportunity to relocate to other parts of the business.

About two weeks ago, Intel completely eliminated the group, this person said. The company's New Technologies Group, which looks at cutting-edge business areas, is now focusing on augmented reality, another source told CNBC.

Intel did not immediately respond to a request for comment.

Intel once hoped that it would rule the wearables category alongside such players as Apple and Fitbit. Back in 2014, the company partnered with celebrities like 50 cent to show off its heart-rate sensing earbuds. Also in that year, it shelled out roughly $100 million for Basis.